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My understanding:

– You won’t be able to register the business name in NSW as the company name exists which is an Australia wide system.

– It would be unlikely you could receive a trademark against the name (or defend it) when the name has been used prior to your use. The company that currently uses the name could dispute the trademark and would most probably win.

I’d suggest giving up on the idea of the ‘fancy widgets’ business name and thinking of another.